Question

Payroll Register

The following data for Throwback Industries, Inc. relate to the payroll for the week ended December 9, 20Y8:

	Hours		Hourly		Weekly		Federal		Retirements
Employee	Worked		Rate		Salary		Income Tax		Savings
Aaron	46		$30				$338.10		$75
Cobb	41		42				374.75		40
Clemente	43		26				219.83		100
DiMaggio	36		40				302.4		90
Griffey, Jr.	48		38				414.96		50
Mantle					$2,280		547.20		65
Robinson	35		34				178.50		40
Williams					2,550		561.00		65
Vaughn	44		46				423.20		40

Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6%, and Medicare tax is 1.5% of each employee's annual earnings. The next payroll check to be used is No. 901.

Required:

1. Prepare a payroll register for Throwback Industries, Inc. for the week ended December 9, 20Y8. Assume the normal working hours in a week are 40 hours. Enter amounts as positive numbers. Round your intermediate calculations and final answers to the nearest whole cent (two decimal places).

Payroll for Week Ending December 9, 20Y8
		Earnings			Deductions					Paid		Accounts Debited
Name	Total Hours	Regular	Overtime	Total	Social Security Tax	Medicare Tax	Federal Income Tax	Retirement Savings	Total	Net Pay	Ck No.	Sales Salaries Expense	Office Salaries Expense
Aaron	46	$	$	$	$	$	$338.10	$75	$	$	901	$
Cobb	41						374.75	40			902
Clemente	43						219.83	100			903
DiMaggio	36						302.40	90			904
Griffey, Jr.	48						414.96	50			905
Mantle							547.20	65			906		$
Robinson	35						178.50	40			907
Williams							561.00	65			908
Vaughn	44						423.20	40			909
Totals		$	$	$	$	$	$	$	$	$		$	$

Feedback

Gross earnings reflects the total amount an employee has earned during a specific pay period before taxes and deductions. Net pay is the total earnings minus the withholdings and deductions. Remember that expenses are classified as either selling or administrative based on the purpose of the expense.

2. Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. If an amount box does not require an entry, leave it blank.

	Sales Salaries Expense
	Office Salaries Expense
	Social Security Tax Payable
	Medicare Tax Payable
	Employees Federal Income Tax Payable
	Retirement Savings Deductions Payable
	Salaries Payable

Answer 1

Payroll for Week Ending December 9, 20Y8
		Earnings			Deductions					Paid		Accounts Debited
Name		Regular	Overtime	Total	Social Security Tax		Federal		Total	Net Pay	Ck No.	Sales	Office
	Total					Medicare	Income	Retirement				Salaries	Salaries
	Hours					Tax	Tax	Savings				Expense	Expense
Aaron	46	1200	270	1470	88.2	22.05	$338.10	$75	$523.35	$946.65	901	1470
Cobb	41	1680	63	1743	104.58	26.145	374.75	40	$545.48	$1,197.53	902	1743
Clemente	43	1040	117	1157	69.42	17.355	219.83	100	$406.61	$750.40	903	1157
DiMaggio	36	1440	0	1440	86.4	21.6	302.4	90	$500.40	$939.60	904	1440
Griffey, Jr.	48	1520	456	1976	118.56	29.64	414.96	50	$613.16	$1,362.84	905	1976
Mantle				2280	136.8	34.2	547.2	65	$783.20	$1,496.80	906		2280
Robinson	35	1190	0	1190	71.4	17.85	178.5	40	$307.75	$882.25	907	1190
Williams				2550	153	38.25	561	65	$817.25	$1,732.75	908		2550
Vaughn	44	1840	276	2116	126.96	31.74	423.2	40	$621.90	$1,494.10	909	2116
Totals		$9,910.00	$1,182.00	$15,922.00	$955.32	$238.83	$3,359.94	$565.00	$5,119.09	$10,802.91		$11,092.00	$4,830.00
Account Title and explanation	Debit	Credit
Sales Salaries Expense	$11,092.00
Office Salaries Expense	$4,830.00
Social Security Tax Payable		$955.32
Medicare Tax Payable		$238.83
Employees Federal Income Tax Payable		$3,359.94
Retirement Savings Deductions Payable		$565.00
Salaries Payable		$10,802.91